Popularity in social media and company growth: evidence for local banks

Abstract

Purpose – we investigate models of social media activity of small local banks (SLBs) in Poland and the consequences of their adoption for SLBs’ growth. Research methodology – with the use of k-medoid clustering, we differentiate between types of SLBs’ social media activity. Then, after controlling for bank specificity and local environment, we employ these activity types in regression models explaining a bank’s popularity in social media and bank growth. Findings – although SLBs draw attention if they concentrate their social media activity on local affairs, conversion of such popularity into a bank growth is difficult to achieve. Research limitations – a relatively limited number of SLBs (111 entities) adopted an active social media policy. As a result, we have to look for social media activity models instead of describing the activity directly with numerous variables employed simultaneously in regressions. Practical implications – in order to reach the highest recognition in social media, a small bank should widely discuss local affairs. Nevertheless, SLBs’ managers should carefully enter the social media world as even suitably selected social media strategy does not automatically lead to economic outcomes. Originality/Value – first, we extend the scarce evidence on social media adoption by financial companies. Second, we clearly define different types of social media activity of local firms. Third, we differentiate between the attention drawn through social media activity and its economic repercussions.

Empowering Financial Education by Banks—Social Media as a Modern Channel

“…This finding is confirmed in the literature, as studies of corporate communication via social media stressed that companies mostly choose Facebook as a strategic social media channel (e.g., Bortree and Seltzer 2009;Saxton and Waters 2014), with a slight increase in Twitter (Tao and Wilson 2015). Ozdora-Aksaka and Atakan-Duman (2015) point out that Turkish banks construct their identity on social media accounts (Facebook and Twitter) by emphasizing their softer side (especially social responsibility), which is similar to cooperative banks in Poland (Kozłowski and Kuchciak 2019).…”

Kerja sama endorsement selebriti media sosial untuk meningkatkan popularitas merek usaha industri horeka (hotel, restoran, kafe) selama pandemi Covid-19

“…Menjadikan para pengikut yang merupakan calon konsumen menjadi konsumen (Shiau & Luo, 2012). Media sosial memberikan kemungkinan baru untuk memperkuat hubungan perusahaan dengan kliennya melalui penyebaran berita positif dari mulut ke mulut (Kozłowski & Kuchciak, 2019). Pentingnya mencapai popularitas media sosial dewasa ini bagi sebuah perusahaan, di antaranya adalah membangun reputasi (Sodeman & Gibson, 2015).…”